How To Know The Sale Value Of Your Home?
Tuesday, 17 August 2021

Analyzing the property is fundamental if you intend to sell or rent the space.

Having a property is one of the biggest investments people usually make. The purchase is fundamental for those who want to build a heritage for them and their heirs, for example. Also, the house can be used to increase the monthly income, if the owner decides to rent it.

Since the acquisition is related to the movement of large amounts, most people need to get credit to buy the property. After some years, when the installments are quit and the owner decides to rent or even sell the house, it may be hard to know the real value of the property.

There are many factors that need to be considered to discover the sale value of your house, apartment or building site. In this article, you will learn how to know this value, why it is important, who can measure it and how much it costs.

Why is it important?

Basically, knowing the sale value of your property is fundamental to make good business if you decide to sell or rent it. Considering that the time has passed since you acquired the property, it is important to analyze the real value of the house, which can vary by economy, region, wear and other factors.
The report can be used for different reasons and processes, such as selling the property, asking for real estate financing, taking out home insurance and discovering the tax you will have to pay for it.

How is the process?

Valuing a house is to analyze all the conditions of the property and the zone or neighborhood, considering all the factors that represent a market value in order to provide the most precise sale price for the house or apartment.
The evaluation can be done, basically, in three ways: considering the building site, comparing in the real estate market and pondering the possibility of renting the property.

Calculation considering the building site

To perform the calculation according to this process, the entire property is reviewed, including the interior and exterior of the house or building. This is done to find deterioration and analyze structural capacity.
For the calculation, the appraiser considers the area and its price, the type of building and its age, the area occupied by the property, the years of use and its structural components.

Calculation by comparison in the real estate market

In this valuation model, also known as homologation, what is considered are the current prices of real estate properties in the real estate market. This analysis considers the following factors:
  • The region where the property is located;
  • The location of the house or apartment within the property, in the case of a building or condominium;
  • The ways to access it;
  • The supply and demand for real estate in the zone;
  • Others.
The procedure consists of evaluating the current situation of supply and demand and obtaining prices and characteristics of properties similar to the appraised one, achieving the most accurate sale value possible.

Calculation for renting the property

This way of valuation is similar to the previous one, as it also consists of comparing properties with similar characteristics. However, the comparison is made to arrive at the rental value rather than the sale one.
Therefore, the calculations consider smaller monthly amounts rather than the entire amount that would be considered in a property sale.

Who can measure the value of a house?

In Mexico and other countries, the only person who can analyze the sale value of a property is an authorized expert with a municipal registry in the city where the property is located. In addition, the appraisal must be approved by the Sociedade Hipotecária Federal (SHF), which controls real estate appraisals.

How much does it cost?

The appraisal expert usually charges a fixed amount between one thousand and three thousand pesos, according to the value of the property. As an estimate for the valuation, you can consider the average value per square meter of construction in the area where the property is located.
Thinking of buying, selling or renting property in Ontario? Catherine Nacar is a trusted Realtor in Brampton, delivering tailored solutions to your specific needs.
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